Senate releases latest version of Clarity Act including software developer protections and ethics provision with 'sunset' date in 2029

After months of deliberations, Republicans released the latest text for broader cryptocurrency legislation — sending it to a potential full Senate vote as soon as next week.

The 616-page bill, obtained by The Block, is a product of combining both the Senate Agriculture Committee and Senate Banking Committee versions that passed out of those panels over the past year.

The new text addresses a key sticking point over the past few months — how to limit presidents, vice presidents, members of Congress and other federal officials from profiting from digital assets while in office. Ethics has been the final hurdle, after many, in getting sweeping crypto legislation, called the Clarity Act, passed into law.

At the center of the ethics issue has been  Trump’s memecoins and his family’s company, World Liberty Financial. Financial disclosures released last month showed that Trump received millions of dollars tied to WLF, intensifying debate over ethics safeguards.

The latest text includes a section on ethics at the very end of the bill that would block a public official or employee, as well as their spouses, from issuing or sponsoring digital assets. The language says that they can still invest in digital assets.

As reported earlier, the Justice Department would be in charge of enforcing the provision. That is likely to be challenged by Democrats who have argued that state attorneys general need to have involvement.

"This DOJ enforcing an ethics provision? That's an unserious offer, and I wouldn't support the bill if that's the language. But we'll keep working from that floor to reach an agreement that holds us all accountable," Sen. Angela Alsobrooks said in a statement to The Block on Tuesday.

The ethics section also details a sunset provision that says it will have "no force and effect on and after noon on January 20, 2029." In a fact sheet released by Sen. Cynthia Lummis, R-Wyo., she said the sunset provision underscores "that this is a standard President Trump chose to hold himself to, not one Congress imposed on him."

Elsewhere throughout the bill is the Blockchain Regulatory Certainty Act, which had become a key point of contention. The provision creates a safe harbor for non-custodial developers, clarifying that they are not money transmitters.

That section has support from much of the crypto industry, who say it provides much-needed legal certainty for software developers and helps prevent innovation from moving offshore. Meanwhile, some law enforcement groups, and even Catholic leaders, have warned that it could weaken safeguards to combat human trafficking and could hinder investigations.

In a statement on Wednesday, The Digital Chamber CEO Cody Carbone called the bill text a "meaningful step."

"Now is our best chance for durable market structure law to allow America to be the global leader in digital assets," Carbone said. "We're encouraged, and we're ready to keep working until the bill reaches the President's desk."

Blockchain Association CEO Summer Mersinger said they are reviewing the text.

"We are grateful to the senators and staff on both sides of the aisle who have invested significant time and effort in reaching this moment, and we are eager to help get the strongest possible bill across the finish line," Mersinger said in a statement.

The latest bill text also includes 25 new sections to address law enforcement concerns.

"At first glance, this title appears to be smart regulation that will provide law enforcement with appropriate tools without overregulating software developers," the DeFi Education Fund said in a post on X. 

The bill would need Democratic support to pass a full Senate vote, but it remains unclear whether the ethics provisions —one of Democrats' primary concerns — have enough backing to secure that support. If the Senate passes the bill in the coming weeks, before the August recess begins on Aug. 7, it would move to the House for a vote. However, the window for congressional action is narrowing as lawmakers prepare to shift their focus to the election season.

Updated at 5:25 p.m. UTC to include details